Gold eases in narrow range as traders eye economic data
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Gold prices eased in a tight range on Wednesday as the U.S. dollar firmed, although bullion was not far from a one-week high scaled in the previous session, as traders looked ahead to impending economic data later this week.
Spot gold was down 0.1% at $1,816.32 per ounce by 1311 GMT, after rising more than 1% on Tuesday on the back of a dip in the dollar. U.S. gold futures were unchanged at $1,825.80.
"After yesterday's sharp rally, traders are waiting for fresh cues, especially from tomorrow's GDP data and the performance of U.S. dollar," said Hareesh V., head of commodity research at Geojit Financial Services.
Reports of a surge in COVID-19 cases in China may be another trend setter for the market, he said, adding prices are most likely to be choppy, possibly between $1,760 and $1,840.
The dollar index was firm on the day after a yen driven fall in the last session following a Bank Of Japan surprise policy tweak.
"The decision was initially interpreted as the first step towards a more hawkish stance from the BoJ, triggering an increase in demand for the yen, generating dollar weakness and benefiting gold... However, today the shock started to wear off... (with) gold giving up some of yesterday's gains," ActivTrades senior analyst Ricardo Evangelista said.
On the data front, the U.S. gross domestic product (third estimate) due on Thursday and the core personal consumption expenditure (PCE) price index scheduled on Friday are also on the investors' radars.
Gold has risen nearly $200 since falling to a more than two-year low in late September as expectations around slower rate hikes from the Federal Reserve dented dollar's allure.
Rising interest rates increase the opportunity cost of holding gold since the metal does not pay interest.
